Try this OP: https://lastpass.com/features_free.php
There is a risk that the owner of this can access all our accounts. But that applies too all the softwares, browsers we use.
The encryption and decryption is done locally so it should be safe.
https://lastpass.com/how-it-works/
I don't think that's the case.
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Do you understand what encrypted data means?
A data which is sent over internet is crackable. No offence but these softwares are not good for storing banking or paypal like site's password. You might already know it.
No hard feelings. OP wanted to know how we store password, let not the thread go off topic.
Try this OP: https://lastpass.com/features_free.php